COSTS OF THE MODEL DEPARTMENT PASTEURIZED MARKET MILK

The aim of the present study was to update our model calculations by a nalysing the cost behaviour pattern in the department ''pasteurized ma rket milk'. Compared with the cost comparison of different methods use d for manufacturing market milk undertaken in 1975 this calculation is based on the cost finding of a ''single-product'' simulation using th e ''Tetra-Rex'' packing system. By considering the principle of cost a ccounting which has been methodically further developed the production process used for manufacturing pasteurized whole milk (3.5% fat) in 1 -I cartons was analysed in view of the costs incurred. Three different models with filling capacities between 5.400-22.800 packages/hour, co rresponding to a maximal production of 30.3 to 128.0 packages/year, ar e the starting point for analysing the production costs of the departm ent. As a function of the daily quantity filled and the production pro gramme specific model equipments are determined, from which the variab le and fixed inputs of the production factors can be directly derived. The influence of different sizes- and utilization of capacity on prod uction costs is illustrated through simulated outputs ranging between 15 and 100%. They enable the determination of costs for milk quantitie s between 4.5 and 128.0 million packages per year. According to the re spective capacity and the technical design of the models the investmen ts amount to 1.7 million DM for model 1 and to 4.7 million DM for mode l 3. Related to the respective output of the department specific inves tments are necessary which decrease with increasing model size from 56 to 37 DM per 1.000 packs. The total costs of the department ''pasteur ized market milk'', which are composed of the direct cost of both the product and the division, amount to 73.8 pfennigs/pack for the largest model in the case of a 100% output and increase with decreasing model size and falling capacity utilization rate (15%) to 83.1 pfennigs/pac k. As to the output-related trend in total costs there is - between th ree- and one-shift work - a decrease in costs of 3.0 pfennigs/pack for model 1, whilst it is 2.0 pfennigs/pack for model 3. Cost economies f rom the largest to the smallest model as a function of capacity are 1. 7 pfennigs/pack for three-shift work and 2.7 pfennigs/pack for one-shi ft work. As to the percentage distribution of total costs with a 64% c apacity utilization rate raw material costs are dominant with model-sp ecific proportions ranging between 72-73%, operating expenses account for 25-26%, and fixed assets proportionally for 2-3%. If one describes the percentage distribution of total costs without raw material costs the cost types of operating costs are predominant. Under the same ini tial conditions packing material costs account for 83-89%, personnel c osts for 3-6%, energy costs and expenses incurred by operating supplie s for 1-2%; here fixed assets are 7-9%. From the results of the model calculations it can be concluded that with increasing capacity and ris ing capacity utilization rate considerable cost economies can be achie ved. On the other hand, it appears that cost economies as a function o f the number of production days are minimal because of the low share o f the per diem fixed costs in total costs.